High Court refuses permission for judicial review over policy of Welsh council on second homes and short term lets

An application for judicial review of Gwynedd Council's implementation of new rules aimed at curbing second homes and short-term holiday lets has been dismissed by a High Court judge.

The council became Wales's first local planning authority to implement an Article 4 Direction in September 2024, following a public engagement period the previous year.

The purpose of an Article 4 Direction is to revoke the right to change of use without planning consent for the following use:

• Change of use of a main residence (use class C3) into a second home (use class C5) or short-term holiday let (use class C6) and specific mixed uses;
• Change of use of a second home (use class C5) to a short-term holiday let (use class C6) and specific mixed uses;
• Change of use from a short-term holiday let (use class C6) to a second home (use class C5) and specific mixed uses. 

The council was able to make the direction following changes to Welsh planning legislation aimed at handing local planning authorities the power to manage the use of housing as second homes and holiday lets.

Gwynedd County, which is home to Snowdonia National Park, has the highest percentage of second homes and short-term holiday accommodation in Wales, according to the council.

The local authority said the change was campaigned for "as part of efforts to ensure that there is an affordable provision of houses that meet the needs of local communities".

However, a local campaign group, Say No to Article 4, argued that the new direction would reduce house prices, "plunge" homeowners into negative equity, and make it difficult for homeowners to sell their properties.

They also warned the move would harm local tourism, lead to revenue loss for locals who run short-term holiday lets and that the policy indirectly discriminated against older community members, who might have been planning to release equity on their properties.

The group issued proceedings in 2023, after having raised around £64,000 across three individual crowdfunding campaigns.

The High Court has refused permission for judicial review, finding that none of the grounds were arguable.

Giving reasons for the dismissal, the judge said the council's decision was taken after a "robust and thorough exercise", and that the cabinet "may be taken to understand the concept of material change of use and there is nothing to indicate to the contrary".

They also noted that council reports made clear that the direction was "only one method" of ensuring the provisions of housing for local needs and accepted that there may be minimal effect on the value of houses on the market.

Among the reasons, the judge also noted that the council reports "referred both to the exceptional circumstances (which is a broad concept) behind the making of the direction and the robust nature of evidence which justified it".

The claimant is currently taking advice from their legal team regarding an appeal.

Adam Carey